Elixir Energy (ASX:EXR) share price lifts on hydrogen update

Shares in the gas explorer had a foray into the green this morning….

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The Elixir Energy Ltd (ASX: EXR) share price is steady in afternoon trade after a 6% surge earlier today.

Shares in the gas explorer shot up to 26.5 cents apiece mid-morning but have slipped back amid general market malaise.

Let's take a look at what's happened with the Elixir share price today.

male worker in hi-vis checking the balance of the hydrogen tanks

Image source: Getty Images

Hydrogen update propels Elixir share price higher

Shares in Elixir received a boost in morning trade after the company released a compelling presentation on its interest in hydrogen and the market potential.

The company highlighted various initiatives that its subsidiary in Mongolia, GOH Clean Energy LLC, has been pursuing.

According to the presentation, Elixir considers Mongolia as one of the best locations in the world to produce green hydrogen.

The factors that make the location attractive include its proximity to Chinese markets, low-cost delivery options and few competitors.

Elixir noted its current natural gas assets in Mongolia are highly complementary to pursuing more clean energy ventures.

In particular, Elixir highlighted the market opportunity in China.

The company noted the physical nature of hydrogen makes it expensive to ship long distances. As a result, hydrogen sources adjacent to large users like China present a massive competitive advantage.

More on Elixir Energy

The Elixir share price has made numerous headlines this past month.

Most recently, the company released an operations update relating to its Nomgon IX Coal Bed Methane site.

Elixir's management noted the company now has 3 new potentially productive sub-basins in its inventory.

Shares in Elixir have remain buoyed since the company announced it had extended the area of discovery in its Kingston sub-basin in late August.

Recently, the Elixir share price has also been boosted by the recent price rally in the oil markets.

Snapshot of the Elixir share price

The Elixir share price has had a volatile run in 2021.

Shares in the gas explorer shot to record highs in April and have been progressively sold down since.

Despite the sell-off, the Elixir share price remains more than 104% higher since the start of the year.

At the time of writing, shares in Elixir are flat for the day at 25 cents apiece after hitting 26.5 cents around 11 o'clock.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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